SEHK:375

Stock Analysis Report

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Executive Summary

YGM Trading Limited, an investment holding company, engages in the wholesale and retail of garments and accessories in Hong Kong, the People’s Republic of China, Taiwan, the United Kingdom, and internationally. More Details

Risk Analysis

Does not have a meaningful market cap (HK$332M)



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has YGM Trading's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 375 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

375

3.1%

HK Luxury

1.1%

HK Market


1 Year Return

-63.8%

375

11.0%

HK Luxury

1.4%

HK Market

Return vs Industry: 375 underperformed the Hong Kong Luxury industry which returned 11% over the past year.

Return vs Market: 375 underperformed the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

375IndustryMarket
7 Day-1.5%3.1%1.1%
30 Day-9.1%12.2%7.0%
90 Day-6.1%27.4%2.4%
1 Year-63.0%-63.8%13.2%11.0%5.6%1.4%
3 Year-55.9%-74.7%49.2%35.2%-4.4%-14.8%
5 Year-44.2%-68.8%78.3%52.3%20.5%0.2%

Price Volatility Vs. Market

How volatile is YGM Trading's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is YGM Trading undervalued compared to its fair value and its price relative to the market?

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 375's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 375's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 375 is unprofitable, so we can't compare its PE Ratio to the HK Luxury industry average.

PE vs Market: 375 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 375's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 375 is good value based on its PB Ratio (0.6x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is YGM Trading forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as YGM Trading has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has YGM Trading performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 375 is currently unprofitable.

Growing Profit Margin: 375 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 375 is unprofitable, but has reduced losses over the past 5 years at a rate of 23.3% per year.

Accelerating Growth: Unable to compare 375's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 375 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-29.5%).


Return on Equity

High ROE: 375 has a negative Return on Equity (-16.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is YGM Trading's financial position?


Financial Position Analysis

Short Term Liabilities: 375's short term assets (HK$271.8M) exceed its short term liabilities (HK$119.0M).

Long Term Liabilities: 375's short term assets (HK$271.8M) exceed its long term liabilities (HK$48.3M).


Debt to Equity History and Analysis

Debt Level: 375's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: 375's debt to equity ratio has increased from 0.9% to 1.3% over the past 5 years.

Debt Coverage: 375's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 375's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is YGM Trading current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 375's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 375's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 375's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 375's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 375 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 375's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

William Fu (58 yo)

5.08yrs

Tenure

HK$2,298,000

Compensation

Mr. Sing Yam Fu, also known as William, has been an Executive Director of YGM Trading Ltd. since 1995. Mr. Fu has been the Chief Executive Officer of YGM Trading Ltd. since September 23, 2015 and served as ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD296.51K) is about average for companies of similar size in the Hong Kong market ($USD233.00K).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wing Sun Chan
Chairman of the Board5.08yrsHK$1.19m8.75%
HK$ 29.0m
Sing Yam Fu
CEO & Executive Director5.08yrsHK$2.30m1.25%
HK$ 4.2m
Suk Ling Chan
Vice Chairman5.08yrsHK$2.03m4.37%
HK$ 14.5m
Wing Fui Chan
Executive Directorno dataHK$60.00k0.015%
HK$ 48.1k
Wing Kee Chan
Executive Director33.75yrsHK$60.00k6.25%
HK$ 20.7m
Andrew Chan
MD & Executive Director6.25yrsHK$1.59m0.24%
HK$ 784.0k
Ying Tung Kwok
Company Secretary & Financial Controller2.58yrsno datano data
Hendrik H. Penndorf
CEO of Societe Guy Laroche & Director of Gl Europa S.A.no datano datano data
Kwai Yung Ngai
Managing Director of Hong Kong Security Printing Ltd22.75yrsno datano data

5.1yrs

Average Tenure

62yo

Average Age

Experienced Management: 375's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wing Sun Chan
Chairman of the Board5.08yrsHK$1.19m8.75%
HK$ 29.0m
Sing Yam Fu
CEO & Executive Director5.08yrsHK$2.30m1.25%
HK$ 4.2m
Suk Ling Chan
Vice Chairman5.08yrsHK$2.03m4.37%
HK$ 14.5m
Wing Fui Chan
Executive Directorno dataHK$60.00k0.015%
HK$ 48.1k
Wing Kee Chan
Executive Director33.75yrsHK$60.00k6.25%
HK$ 20.7m
Andrew Chan
MD & Executive Director6.25yrsHK$1.59m0.24%
HK$ 784.0k
Hendrik H. Penndorf
CEO of Societe Guy Laroche & Director of Gl Europa S.A.no datano datano data
Hon Cheung So
Independent Non-Executive Director3.08yrsHK$150.00kno data
Kenneth Hung
Director of Michel René Enterprises Ltdno datano datano data
Ting Ki Choi
Independent Non-Executive Director7.83yrsHK$150.00kno data
Guangming Li
Independent Non-Executive Director2.75yrsHK$110.00kno data

5.7yrs

Average Tenure

65yo

Average Age

Experienced Board: 375's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

YGM Trading Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: YGM Trading Limited
  • Ticker: 375
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$331.728m
  • Shares outstanding: 165.86m
  • Website: https://www.ygmtrading.com

Number of Employees


Location

  • YGM Trading Limited
  • No. 22 Tai Yau Street
  • San Po Kong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
375SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

YGM Trading Limited, an investment holding company, engages in the wholesale and retail of garments and accessories in Hong Kong, the People’s Republic of China, Taiwan, the United Kingdom, and internation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 13:02
End of Day Share Price2020/10/23 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.